Employees
assemble
new
energy
vehicles
at
an
intelligent
factory
of
electric
vehicle
company
Leapmotor
on
April
8,
2024
in
Jinhua,
Zhejiang
Province
of
China.
Vcg
|
Visual
China
Group
|
Getty
Images
BEIJING
—
Europe’s
probe
into
Chinese
electric
cars
was
overly
selective
to
the
point
that
the
results
are
not
credible,
a
Chinese
official
claimed
in
an
exclusive
interview
with
CNBC
on
Monday.
The
European
Commission
last
week
announced
plans
to
impose
tariffs
on
imported
Chinese
electric
vehicles
starting
July
4.
The
provisional
decision
followed
a
monthslong
probe
into
the
role
of
government
subsidies
in
Chinese
EVs.
China’s
electric
car
industry
has
taken
off
after
more
than
ten
years
of
development.
Domestically,
it’s
put
not
only
Tesla
under
pressure
but
pushed
traditional
automakers
and
startups
alike
into
fierce
competition
over
car
tech
features
and
price.
Slowing
growth
at
home
has
also
encouraged
Chinese
electric
car
companies
to
ramp
up
sales
strategies
for
Southeast
Asia,
the
Middle
East
and
Europe.
The
Chinese
side
has
publicly
criticized
the
EU’s
move
and
denied
corresponding
allegations
—
including
from
the
U.S.
—
of
industrial
overcapacity
that
puts
manufacturers
in
other
countries
at
risk
of
shutting
down
and
laying
off
workers.
The
EU
anti-subsidy
probe
only
looked
at
Chinese
companies,
instead
of
businesses
with
the
largest
export
volume,
said
Jin
Ruiting,
director
of
the
Academy
of
Macroeconomic
Research,
a
research
institution
directly
under
the
National
Development
and
Reform
Commission.
He
did
not
specify
which
exporters.
The
sample
choice
was
“very
selective,”
Jin
said
in
Mandarin,
translated
by
CNBC.
He
claimed
that
was
in
violation
of
World
Trade
Organization
rules.
The
WTO
declined
to
comment.
watch
now
“In
line
with
rules
applicable,
the
final
selection
of
the
sample
was
based
on
the
largest
representative
volume
of
production,
sales
or
exports
to
the
Union
that
can
reasonably
be
investigated
within
the
time
available,” Olof
Gill,
the
European
Commission’s
spokesperson
for
trade
and
agriculture,
said
in
a
statement
to
CNBC.
Gill
said
the
largest
export
volume
was
not
the
only
criteria
and
that
the
Commission
also
looked
at
production
and
domestic
sales
volume.
“The
Commission
considers
that
the
sample
was
selected
in
accordance
with
the
WTO
rules
and
the
corresponding
EU
legislation
in
this
regard,”
he
said.
Major
German
automakers,
which
derive
significant
sales
from
China
and
have
local
partnerships,
swiftly
voiced
their
opposition
to
the
EU’s
planned
tariffs.
Volkswagen
Group
said
in
a
statement
that
it
rejects
“countervailing
duties”
and
that
“the
timing
of
the
EU
Commission’s
decision
is
detrimental
to
the
current
weak
demand
for
BEV
vehicles
in
Germany
and
Europe.”
“The
Volkswagen
Group
confidently
accepts
the
growing
international
competition,
including
from
China,
and
sees
this
as
an
opportunity.
This
also
benefits
our
customers,”
the
German
automaker
said.
Volkswagen
delivered
3.2
million
passenger
cars
in
China
last
year,
more
than
its
3.1
million
deliveries
to
Western
Europe,
including
the
U.K.
BMW
Group
also
delivered
more
cars
in
China
last
year
than
in
continental
Europe.
“Protectionism
risks
starting
a
spiral:
Tariffs
lead
to
new
tariffs,
to
isolation
rather
than
cooperation,”
Oliver
Zipse,
CEO
of
the
BMW
Group,
said
in
a
statement.
“From
the
BMW
Group’s
point
of
view,
protectionist
measures,
such
as
the
introduction
of
import
duties,
do
not
contribute
to
successfully
compete
on
international
markets.”
The
EU
probe
included
Tesla,
which
opened
a
factory
in
Shanghai
in
2019
and
exports
some
of
the
China-made
cars
to
other
markets.
The
Commission
said
Elon
Musk’s
automaker
might
receive
an
individual
tariff.
Requiring
industry
complaint?
The
NDRC’s
Jin
added
that
the
EU
anti-subsidy
probe
does
not
appear
to
be
based
off
an
industry
or
business
complaint.
“There
is
a
problem
with
[the
EU’s]
sample
selection,
and
I
think
there’s
a
big
problem
with
the
conclusion,”
he
said
in
Mandarin,
translated
by
CNBC.
“So
I
think
the
investigation
process
is
not
transparent,
and
the
results
are
not
credible.”
The
EU’s
Gill
said
the
bloc’s
regulation
allows
the
Commission
to
initiate
an
investigation
without
having
to
receive
an
industry
complaint.
The
Commission
said
last
week
its
probe
concluded
that
Chinese-made
battery-electric
cars
benefit
from
“unfair
subsidisation,
which
is
causing
a
threat
of
economic
injury
to
EU
BEV
producers.”
“Consequently,
the
Commission
has
reached
out
to
Chinese
authorities
to
discuss
these
findings
and
explore
possible
ways
to
resolve
the
issues
identified
in
a
WTO-compatible
manner,”
the
EU
statement
said.
The
planned
tariffs
range
from
17.4%
for
BYD
cars
to
38.1%
for
electric
vehicles
from
state-owned
SAIC.
Rhodium
Group
analysts
said
in
an
April
report
that
duties
would
likely
need
to
reach
40%
to
50%,
if
not
higher
for
BYD,
to
“make
the
European
market
unattractive
for
Chinese
EV
exporters.”
The
Biden
administration
in
May
announced
it
would
raise
tariffs
on
imports
of
Chinese
electric
cars
from
25%
to
100%.
A
senior
administration
official
cited
“rapidly
growing
exports”
and
“excess
capacity”
as
reasons
for
the
new
duties.
EVs
vs
ICE
cars
Jin
claimed
that
while
capacity
utilization
for
traditional
fuel-powered
vehicle
companies
in
China
was
70%
to
80%,
that
of
BYD
and
some
new
energy
vehicle
companies
was
100%
or
far
higher.
He
also
pointed
to
a
report
from
the
International
Energy
Agency
that
predicts
high
demand
for
electric
cars
if
the
world
is
to
achieve
net
zero
emissions
in
coming
decades
—
a
demand
Jin
said
Chinese
automakers
are
only
starting
to
fulfill.
The
IEA
said
that
in
order
to
achieve
net-zero
emissions
by
2050,
it
anticipates
electric
car
sales
will
need
to
account
for
around
65%
of
global
car
sales
in
2030.
That
requires
average
growth
of
23%
in
sales
each
year
through
then.
The
agency
said
electric
car
sales
grew
by
nearly
35%
in
2023
from
the
prior
year.
Jin
claimed
that
excess
supply
was
a
reason
why
global
trade
existed,
and
that
if
China
was
producing
too
many
electric
cars,
other
countries
dominated
in
global
exports
of
liquefied
natural
gas,
agricultural
products
and
high-end
semiconductors.
Overall,
Jin
emphasized
the
need
for
global
cooperation
instead
of
de-risking,
despite
what
he
called
the
short-term
benefits
for
some
politicians.
Beijing
has
repeatedly
asked
the
Biden
administration
to
remove
restrictions
on
U.S.
sales
of
advanced
semiconductors
to
China.
—
CNBC’s
Rebecca
Picciotto
contributed
to
this
report.
